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Topic: Setting Limits - Is This Ok? (Read 1464 times)

We picked up a new client this week who engaged us to carry out three specific projects, and who agreed our standard hourly rate. As part of subsequent email discussions over various details, they said they'd like to set a budget cap - not a problem, we are happy to work to that.

One of the projects involves engaging an external partner, a graphic designer. (New Client knows this and is fine with it.)They do, however, want the budget cap to incorporate the fee of the designer.

Well...We've got quotes from three different associates and even the cheapest will take up around half of the total budget for all three projects. This is just for their fee, without factoring in our own involvement on this project.

So we're pretty sure we will be unable to complete all three projects within the budget New Client has set, and it's not feasible for us to simply absorb this and carry out all they want us to do for the budget they've stipulated. (And I will have to make sure my polite spine is in place so I don't end up agreeing to it anyway....)

Would appreciate your views on this response (which I haven't yet sent):

Hi New Client

Thanks for the update and for the details you've provided to help us get started on Project 1.As promised, we've been in touch with several of our associates and asked them to quote for the design side of the work.All the details are attached but, as you'll see, even the lowest comes in at £HalfBudgetAmount.

We pride ourselves on being honest with the people we work with, so feel we have to point out that - assuming you go for the lowest-priced option - this only leaves £HalfBudget for our own input across all three projects. This equates to around XX hours, which will not be enough to complete all the projects - certainly not to the standard we like to deliver.

Could we arrange a call or meeting to discuss how you would like to prioritise the projects and how we should proceed? Obviously we understand all three are important to you and we'd like to help you as much as we can, so we need to make sure we're working on the elements that you consider most essential.

I think the first two paragrahs are fine. You are laying out the facts and then leaving the decision making up to the client.

I would shorten the third paragraph to: Could we arrange a call or meeting to discuss how you would like to proceed given this new information? or something to that effect.

People often have unrealistic ideas about the cost of services they haven't used or don't use often. It's possible that the client is simply unaware of the going rates for graphic design and would be perfectly willing to increase the budget now that they know the actual costs. You don't want to short change yourselves out of work by making interesting assumptions!

If they insist on sticking to the original budget, you can discuss their priorities then.

We pride ourselves on being honest with the people we work with, so feel we have to point out that - assuming you go for the lowest-priced option - this only leaves £HalfBudget for our own input across all three projects. This equates to around XX hours, which will not be enough to complete all the projects to the standard we deliver.

You don't want to allow sub-standard work. Even if you explain that it won't be enough, the client says yes, yes, they understand, on delivery the client will be unhappy. You give value and a guaranteed quality. The client wouldn't buy it if you said it would be shoddy and not as good as they wanted, so don't let that become an option.